Market analysts are watching Ripple’s XRP for a potential price surge against the world’s leading digital currency, Bitcoin.
XRP, known for its lightning-fast transaction speed and secure blockchain technology, has recently experienced a rollercoaster ride due to its lawsuit with the US Securities and Exchange Commission.
However, an XRP and BTC chartist, Cryptoes, predicts a trend reversal for XRP based on current indicators on the chart.
Analysts See A Pump In XRP Price Against Bitcoin
The performance of XRP since the beginning of April has been very low compared to that of Bitcoin. This led to a notable decline in the XRP/BTC pair over the last five weeks.
Its poor performance does not affect how certain analysts picture the token. The positive view of XRP’s price can be attributed to a key support level at its current position.
Cryptoes called crypto enthusiasts’ attention to this occurrence in a tweet, revealing that the weekly chart of the XRP/BTC pair projects a major support level. The chart revealed that XRP’s price had slowed against Bitcoin’s since April 3.
However, the support level could prevent further decline of XRP tokens as it might be the bottom point. He added that the token might consolidate for weeks before initiating a rally.
Another popular crypto analyst, Egrag, has a different view from Cryptoes. According to him, the market currently projects a bearish trend.
His reason is hinged on the movements of two Simple Moving Averages (SMA), the 20 and 100 moving averages on the same chart.
According to Egrag, the 20 Simple Moving Averages (SMA) place sell pressure on the coin’s price. As such, the 100-moving average is a strong resistance against the current price of XRP. It could be difficult for the token to break out from such resistance.
He believes that the presence of these indicators signals market weakness, and XRP could yield to them. But time will tell if XRP will pump to close above the falling wage.
XRP’s Recent Price Performance
There is no significant difference between XRP’s price at the beginning of May and its current price of $0.4286. On May 1, the coin was trading around the $0.47 price mark, which eventually declined to $0.465 at the close of the day.
It maintained this price range between $0.45 and $0.46 over the next seven days and dipped slightly to $0.4186 on May 8. Since then, it has been hovering around the $0.41 and $0.42 price levels.
In the past seven days, it has declined by 7.25%. However, its 24-hour price trades sideways at the time of writing, while the trading volume and market cap have also increased by 18.45% and 1.93%.
-Featured image from Pexels, chart from TradingView
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Crypto analysts believe that XRP could be poised for a price rally against Bitcoin, one of many digital tokens that have seen significant gains recently.
The bullish outlook for XRP comes after a strong performance in 2020 and is backed by recent developments that suggest the digital asset is gaining traction as a payment system.
Despite its low position in the market as one of the smaller cryptocurrencies, XRP has stands out. As the second-largest currency by market capitalization, XRP has surged by over 450 percent since the start of the year and gained momentum as a main payment option for global money transfers.
The digital asset was initially created for financial institutions and is now becoming the token of choice for smaller investors who are looking to diversify their digital asset portfolios.
This surge in investor interest has bolstered optimistic views on the digital asset from many market analysts. With integration from over 200 banks and payment platforms, XRP is looking increasingly attractive as a viable alternative to Bitcoin.
Due to its underlying technology, analysts anticipate that the digital asset could rally against its larger peer, if it continues to gain traction among smaller investors.
In its latest quarterly report, Ripple, the company that created XRP, announced that it had facilitated more than $2 billion in transactions in the first three months of the year. While investors in Bitcoin prefer to hodl in anticipation of price appreciation, investors in XRP are looking to the underlying technology to support the price.
Crypto analysts have also pointed to its scalability, speed, and low transaction costs as bolstering the bullish outlook on the digital asset.
In the short-term, analysts are expecting the digital asset to continue outperforming Bitcoin. Long-term, if the underlying technology is able to reach its full potential, it could make it that much more attractive as an investment option.